Multiplex company Inox Leisure said on Tuesday it had received approval from the BSE and the NSE for the proposed merger of major film exhibition players PVR Ltd with the company.
In a stock exchange notification, the company said: “We wish to inform you that the company has received a letter of observation with ‘no adverse comments’ dated June 20, 2022 from BSE Limited and a letter of observation with ‘no objections’. “dated June 21, 2022 from the National Stock Exchange of India Limited respectively in connection with the Scheme of Amalgamation.”
According to the standards, companies seeking to execute a merger or spin-off strategy must obtain a “no objection certificate” from exchanges.
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The merger will create the largest multiplex chain in the country with a network of over 1,500 screens. The combined entity will be named PVR INOX Ltd with the branding of the existing screens to continue as PVR and INOX respectively. New cinemas opened after the merger will carry the PVR INOX brand, he added.
Pursuant to the agreement, INOX will merge with PVR in a share exchange ratio of 3 shares of PVR for 10 shares of INOX. The PVR promoters will hold a 10.62% interest while the INOX promoters will hold a 16.66% interest in the combined entity.
When the merger becomes effective, the board of directors of the merged company will be reconstituted with a total membership of 10 members and the two families of promoters will have equal representation on the board of directors with two seats each.
PVR’s Ajay Bijli would be named Managing Director and Sanjeev Kumar would be named Executive Director of the merged entity. Inox’s Pavan Kumar Jain would be appointed non-executive chairman of the board and Siddharth Jain would be appointed non-independent non-executive director in the combined entity.
PVR currently operates 871 screens at 181 properties in 73 cities while INOX operates 675 screens at 160 properties in 72 cities.
Inox Leisure’s stock closed at Rs 482.15 each on the BSE, up 5.38% from the previous close. The PVR Ltd certificate ended up 5.71% at Rs 1,785.50 each.
First post: STI